BitMart Withdrew Hong Kong Registration Application
Date: 2025-08-29 Author: Henry Casey Categories: BUSINESS
The cryptocurrency exchange BitMart has announced that it has withdrawn its application for a VAST license in Hong Kong. This move is part of a trend of major players leaving the local market, caused by the strict requirements of the Securities and Futures Commission (SFC). According to official data, the reason for the refusal was disagreements between the exchange's management and the regulator, which could not be resolved.
Among the key innovations of the SFC is the requirement to keep 98% of customer funds exclusively in cold wallets, and transfers are allowed only to pre-approved addresses. In addition, exchanges must ensure a level of liquidity sufficient to cover all expenses for one year of operation.
The regulator also banned the use of smart contracts in the management of cold wallets. To obtain a license, the platform must have a minimum authorized capital of 5 million Hong Kong dollars (about $641,000) and take out insurance that covers 100% of hot wallet assets and half of cold wallet assets.
These measures significantly complicate the activities of crypto exchanges, as they require additional financial and organizational resources. Market participants note that for many companies, fulfilling such conditions becomes economically unprofitable.
BitMart was not the only one to refuse registration. Previously, Bybit, OKX, HKVAEX and Gate took similar steps, also citing the incompatibility of the new rules with their operating models. As a result, the number of licensed platforms in Hong Kong is decreasing, despite the previously declared plans of the authorities to turn the city into an international crypto hub.
Experts believe that the SFC policy is aimed at strengthening control over the industry and protecting the interests of investors, but too strict barriers can lead to the opposite effect - the departure of large players and a decrease in the attractiveness of the region for cryptocurrency business.
The BitMart situation shows that the Hong Kong market is entering a new phase. Now, only companies with sufficient capital, a high level of security, and a willingness to operate under maximum regulation will be able to apply for official registration. The rest will have to look for alternative jurisdictions to develop their business.
Thus, the withdrawal of BitMart's application became another signal that Hong Kong's strategy for controlling the crypto market is gradually pushing leading international platforms away from it.
